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Timely insights from the Economy, Strategy & Finance Center
On June 11, US and Chinese officials finalized a new trade framework following two days of negotiations in London. One of the main sticking points was the treatment of Chinese exports of rare earth elements and magnets to the US. The Administration has conveyed that the sides have come to an agreement to now release the exports of these critical materials from China to the US, although details remain a bit unclear.
Over the last two months—even during previous trade talks in Switzerland in May—China has had severe export restrictions on these materials, which are critical to the economy. Rare earth elements (REE) and other critical minerals are key inputs in the automotive, robotics, energy, and defense sectors.
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